2005 (6) TMI 189 - AT - Central Excise

Summary

Issues:
1. Seizure of goods loaded in a truck without proper documents.
2. Confiscation of goods, demand of duty, and imposition of penalties.
3. Appellant's contention of duty payment prior to show cause notice.
4. Revenue's argument regarding lack of duty paying documents at the time of seizure.
5. Applicability of penalty under Section 11AC and redemption fine.

Analysis:
The appeal was filed against an order-in-appeal passed by the Commissioner (Appeals) concerning the interception of a truck loaded with SS Flats without proper documents. The goods were seized as the driver failed to produce any bill, invoice, or transport document. Subsequently, an invoice showing duty payment was presented by the appellant. The adjudicating authority confiscated the goods, demanded duty, and imposed penalties. The appellant argued that duty was paid before the issuance of the show cause notice, absolving them of penal action.

The Revenue contended that the Director of the company could not explain why the goods were cleared without duty paying documents at the time of seizure, justifying the confiscation. The Tribunal noted that no duty paying document was initially produced, but one was presented the next morning. Considering the circumstances and the precedent set by the Larger Bench, the penalty under Section 11AC was set aside. The Tribunal found no discussion in the impugned order regarding the Director's actions, leading to the penalty on the Director being deemed unsustainable and set aside. The redemption fine was reduced to Rs. 25,000 based on the facts and circumstances of the case.

In conclusion, the Tribunal disposed of the appeals by upholding the confiscation of goods due to the lack of initial duty paying documents, while setting aside the penalties under Section 11AC and on the Director. The redemption fine was reduced, taking into account the specifics of the case.